CPUC Schedules Consideration of Cal Water and Dominguez Merger; Approval Anticipated at March 16, 2000 Meeting.Business/News Editors SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 17, 2000 California Water Service Group (NYSE NYSE See: New York Stock Exchange : CWT cwt 112 pounds avoirdupois weight. ) and Dominguez Services Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DOMZ) announced today that the Administrative Law Judge administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. assigned to the companies' merger application issued a proposed decision recommending approval of the merger. It will be considered at the March 16, 2000 meeting of the California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, . &uot;We are delighted with the proposed decision. We believe that this merger will provide significant benefits to stockholders and customers, and we're looking forward to finalizing the transaction,&uot; said Robert W. Foy, Chairman of the Board of California Water Service Group. The proposed decision, issued on February 15, 2000, recommends approval of the merger with the following conditions, many of which the companies proposed during hearings: -- Merger related costs or expenses may not be recovered from customers. -- Dominguez customers will continue to receive the financial benefit of water rights currently owned by Dominguez. -- Dominguez operations may be combined with adjacent Cal Water districts, however, customer rates will be set independently as if the districts were not merged. -- Continued employment will be offered to Dominguez employees. -- For ratemaking purposes, a 52% equity ratio will be imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's . Cal Water will also file baseline revenue requirements for assessing merger related cost savings with the Commission. The Company will receive full credit for the first $3 million of merger related synergies, and 90% credit for cost savings exceeding $3 million. The companies expect to receive Commission approval on March 16, 2000 and complete the transaction shortly thereafter. &uot;We are excited to be on the verge On the Verge (or The Geography of Yearning) is a play written by Eric Overmyer. It makes extensive use of esoteric language and pop culture references from the late nineteenth century to 1955. of implementing the plan that has been developed by the joint Cal Water/Dominguez integration team,&uot; said Peter C. Nelson, President and Chief Executive Officer of California Water Service Group. &uot;We are eager to welcome our new customers and employees, and we will continue to provide the excellent service for which we are known,&uot; he said. California Water Service Group is the parent company of California Water Service Company, CWS CWS Chicago White Sox CWS College World Series CWS Church World Service CWS Child Welfare Services CWS Canadian Wildlife Service CWS Community Water System (EPA) CWS Canada-Wide Standard CWS Compressed Work Schedule Utility Services and Washington Water Service Company. Together these companies provide regulated and non-regulated water utility services to over 1.6 million people in 62 California and Washington communities. California Water Service Group's common stock trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol &uot;CWT&uot;. Dominguez Services Corporation is a utility holding company whose subsidiaries provide water service to 140,000 people in 20 California communities. Dominguez' primary operations are in the South Bay area of Los Angeles County. Additional information about the companies may be found at their websites located at www.calwater.com and www.dominguezh2o.com. This press release contains a number of forward-looking statements that are based on current information and expectations. Actual results may vary materially. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion